The City of Morgan Hill has an Inclusionary Housing Ordinance (IHO) requiring residential developments outside of the City to provide 15 percent of the units as affordable Below Market Rate (BMR) homes to create and maintain an income-based affordable housing inventory. Projects within the Downtown have a 10 percent BMR requirement.
The City has a Resource Library for this IHO and other information. All residential projects must conform to the following BMR requirements:
BMR units must be geographically and proportionally disbursed.
BMR units must be in all building types.
BMR units shall be dispersed among the product types, proportionate in number among each product type that comprises the development.
BMR units must meet the project's average bedroom and bathroom count.
BMR units shall be of the same design and quality and not have significant identifiable differences.
The size of the BMR units and distribution of model types shall be comparable and proportionate to the entire project's makeup.
The BMR unit obligation may not be satisfied with the development of an Accessory Dwelling Unit (ADU).
Alternatives to meet the obligation are codified in Chapter 14.04, Inclusionary Housing Ordinance (IHO) of the City's Municipal Code.
HouseKeys: BMR Program Administrator
HouseKeys administers the BMR Program on behalf of the City. For your reference, please visit the following: